US economy ‘appears to be in recession’

15/10/08 08:07 CET

Financial Crisis

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US stocks fell on Tuesday as fears grew that the American economy has plunged into recession.

San Francisco Federal Reserve Bank President Janet Yellen said the just ended third quarter showed, essentially, no growth at all in the US economy.

On the markets, technology shares and consumer companies performed badly and the Dow Jones index was down 0.82 of a per cent at the close of trading.

Analysts say Wall Street is expected to be nervous in the weeks ahead because of economic worries, and despite the government’s bank rescue plan.

Meanwhile, Asian markets have opened quietly in contrast to the previous two days of dramatic rises.

In Japan, a day after its biggest ever one day gain, the Nikkei index opened down fractionally as did the Australian market.

Taiwan dropped 1.26 per cent.